GENERAL BUSINESS FOR DECISION

Transcription

1 Cabinet A Meeting of the Cabinet of North Ayrshire Council will be held in the Council Chambers, Ground Floor, Cunninghame House, Irvine, KA12 8EE on Tuesday, 11 December 2018 at 14:30 to consider the undernoted business. 1 Declarations of Interest Members are requested to give notice of any declarations of interest in respect of items of business on the Agenda. 2 Minutes The accuracy of the Minutes of the meeting of the Cabinet held on 13 November 2018 will be confirmed and the Minutes signed in accordance with Paragraph 7 (1) of Schedule 7 of the Local Government (Scotland) Act 1973 (copy enclosed). GENERAL BUSINESS FOR DECISION Reports by the Executive Director (Place) 3 Millport Coastal Flood Protection Scheme and Millport Timber Pier Submit report by the Head of Commercial Services (Place) on (1) the development of three options, and agreement to undertaken public consultation on the recommended preferred solution, for the Millport Coastal Flood Protection Scheme; and (2) the Millport (copy enclosed). 4 Review of the North Ayrshire Housing Allocation Policy Submit report by the Head of Physical Environment (Place) on the North Ayrshire Common Housing Allocation Policy (copy enclosed). North Ayrshire Council, Cunninghame House, Irvine KA12 8EE 1

2 5 Self-Build Housing in North Ayrshire Submit report by the Head of Physical Environment (Place) on a pilot project to stimulate the self-build housing marked in North Ayrshire (copy enclosed). 6 HOME: Home Ownership Made Easy Submit report by the Head of Physical Environment (Place) on the implementation of a new housing delivery model, on a pilot site in Largs, which provides an affordable housing solution for those facing challenges securing access to private or social rented housing (copy enclosed). Reports by the Executive Director (Economy and Communities) 7 Disability Employment/Hazeldene Horticulture Public Social Partnership Submit report by the Executive Director (Economy and Communities) on the managed wind up of the Hazeldene Public Social Partnership (PSP), in lieu of the implementation of a new Supported Employment Service (copy enclosed). 8 Urgent Items Any other items which the Chair considers to be urgent. North Ayrshire Council, Cunninghame House, Irvine KA12 8EE 2

3 Cabinet Sederunt Joe Cullinane (Chair) John Bell (Vice-Chair) Robert Foster Alex Gallagher Louise McPhater Jim Montgomerie Chair: Apologies: Attending: North Ayrshire Council, Cunninghame House, Irvine KA12 8EE 3

4 4

5 Cabinet 13 November 2018 IRVINE, 13 November At a Meeting of the Cabinet of North Ayrshire Council at 2.30 p.m. Present Joe Cullinane, John Bell, Robert Foster, Alex Gallagher, Louise McPhater and Jim Montgomerie. Also Present Donald L. Reid. In Attendance C. Hatton, Chief Executive; L. Friel, Executive Director and D. Forbes, Senior Manager (Finance and Corporate Support); S. Brown, Director, C. Whyte, Chief Finance and Transformation Officer and D. MacRitchie, Senior Manager (Criminal Justice Services) (Health and Social Care Partnership); K. Yeomans, Executive Director and G. Robson, Senior Employability and Skill Manager (Economy and Communities); Y. Baulk Head of Service (Physical Environment) and C. Dempster, Senior Manager (Network Management) (Place); A. Fraser, Head of Service (Democratic Services) and M. Sugden, Communications Officer and H. Clancy, Committee Services Officer (Chief Executive's Service). Chair Joe Cullinane in the Chair. Apologies 1. Declarations of Interest There were no declarations of interest by Members in terms of Standing Order 10 and Section 5 of the Code of Conduct for Councillors. 2. Minutes The accuracy of the Minutes of the meeting of the Cabinet held on 2 October 2018 was confirmed and the Minutes signed in accordance with Paragraph 7 (1) of Schedule 7 of the Local Government (Scotland) Act

6 3. Regulation of Investigatory Powers (Scotland) Act 2000 (RIPSA) Submitted report by the Chief Executive on the measures in place to secure compliance with RIPSA and the use the Council has made of the Act in the last year. The Cabinet agreed to note the measures in place to secure compliance with RIPSA and the use the Council has made of the Act in the last year. 4. Revenue Budget 2018/19: Financial Performance to 30 September 2018 Submitted report by the Executive Director (Finance and Corporate Support) on the financial performance for the Council at 30 September Service Financial Performance details were set out at Appendices 1 7, the Housing Revenue Account at Appendix 8, a schedule of the budget transfer, or virements, at Appendix 9 and the Health and Social Care Partnership financial performance at Appendix 10 to the report. The Cabinet agreed to (a) note the information and financial projections outlined in the report; (b) approve the earmarking of 0.113m identified at section 2.4 of the report (iii) meet future year commitments; (c) note the current financial projection for the Health and Social Care Partnership at section 2.5 of the report and request confirmation of actions to secure financial balance in 2018/19; and (d) approve the virements detailed in Appendix Capital Programme Performance to 30 September 2018 Submitted report by the Executive Director (Finance and Corporate Support) on the progress in delivering the Capital Investment Programme as at 30 September The progress of all projects was set out at Appendix 1 and the Housing Revenue Account set out at Appendix 2 to the report. Members asked a question and were provided with clarification on the additional expenditure of 0.500m currently forecast within the programme related to the accelerated Bathroom Programme. The Cabinet agreed to (a) approve the revisions to budgets outlined in the report; and (b) note (i) the General Services and HRA expenditure and revised budgets to 30 September 2018 and (ii) the forecast of expenditure to 31 March Treasury Management and Investment Mid-Year Report 2018/19 Submitted report by the Executive Director (Finance and Corporate Support) on the Treasury Management update for the period 1 April to 30 September The Treasury Management and Investment Mid-Year Report for 2018/19 was set out at Appendix 1 to the report. The Cabinet agreed to (a) endorse the contents of the Treasury Management and Investment Mid-Year Report for 2018/19 set out at Appendix 1 to the report; and (b) note the Prudential and Treasury Indicators contained therein. 6

7 7. Chief Social Work Officer Annual Report Submitted report by the Chief Social Work Officer (Health and Social Care Partnership) on the Chief Social Work Officer Annual Report, with the annual report set out at Appendix 1 to the report. Members asked a question and were provided with clarification on the increased overspend due to a delay in discharge dates. The Cabinet agreed to endorse the report set out at Appendix 1 to the report. 8. Winter Service and Weather Emergencies Plan 2018/19 Submitted report by the Head of Service (Place) on the Winter Service and Weather Emergencies Plan 2018/19. The Winter Preparation Action Plan was set out at Appendix 1 and The Winter Service and Weather Emergencies Plan 2018/19 set out at Appendix 2 to the report. The Cabinet agreed to (a) approve the Winter Service and Weather Emergencies Plan 2018/19; and (b) note the preparations and developments contained in the 2018/19 Winter Preparation Action Plan Year Plan for North Ayrshire Council s Modern Apprenticeship Programme Submitted report by the Executive Director (Economy and Communities) on the proposals for a 3 year investment in the Modern Apprenticeship Programme. The Apprenticeship Charter was set out at Appendix 1 to the report. Members asked a question and were provided with further information in relation to the new programme which would see a greater focus on quality, retention, workforce planning and supporting those most in need of the opportunity. The Cabinet agreed to approve (a) an investment of 3M over three years in the Council s Modern Apprenticeship programme; and (b) the approach being taken to improving the programme, with the Apprenticeship Charter being part of a package of developments. 10. Better Off North Ayrshire Update on Funding Model Submitted report by the Executive Director (Economy and Communities) on the Better Off North Ayrshire Programme. The Cabinet agreed to approve the (a) proposed changes to the Better Off North Ayrshire funding arrangements and the current assessment of financial implications for North Ayrshire Council; (b) new funding agreement with the Big Lottery; (c) the approach to managing the risk; and (d) the intention to continue reporting to Cabinet on a bi-annual basis. The Meeting ended at 3.15 p.m. 7

8 8

9 NORTH AYRSHIRE COUNCIL Cabinet 11 December 2018 Title: Purpose: Recommendation: Millport Coastal Flood Protection Scheme and Millport Timber Pier To: (1) update Cabinet on the development of three potential options for the Millport Coastal Flood Protection Scheme and to seek agreement to undertake public consultation on the recommended preferred solution; and (2) to provide an update on the Millport pier. That Cabinet: a) notes the work carried out to date in developing three potential design options for the proposed Millport Coastal Flood Protection Scheme; b) notes the preferred solution Option 2, as outlined in the attached (Appendix 1) Scheme Recommendation Report executive summary; c) agrees the realignment of 1.5m capital investment between the Upper Garnock FPS and the Millport Coastal FPS; d) notes the remaining 1.58m additional investment required for Millport FPS; e) agrees that officers should now undertake community engagement on the recommended preferred solution; f) notes the update information provided on the Millport pier; g) agrees that officers will continue to work with the local community with regards to their aspirations for coastal tourism through the Ayrshire Growth Deal; h) agrees to receive further progress updates on the Millport Coastal Flood Protection Scheme after the public engagement events in early Executive Summary 1.1 The requirement for a coastal flood protection scheme for Millport was included within the Ayrshire Local Flood Risk Management Strategy and Plan 2015 and 2016 respectively. An initial high level option appraisal carried out at that time suggested that a nearshore rock breakwater, which replaces the existing timber pier, together with the construction of onshore flood walls, could potentially facilitate the required flood protection works, with an indicative cost of 12.1m. 9

10 1.2 Through the National prioritisation of flood protection works, Scottish Government agreed to fund 80% of the necessary works, with North Ayrshire Council being responsible for the remaining 20% of costs. 1.3 Since then work has been progressing to develop a potential design solution for a flood protection scheme. This has included a series of non-statutory community engagement events to facilitate the development of a scheme proposal which achieves the required flood protection levels and is supported by the local community. 1.4 During informal public engagement events, there were concerns raised with the proposed construction of a nearshore breakwater replacing the timber pier. Local people suggested that offshore breakwater options should be appraised, and that this should include an option that would enable the potential future development of a small marina in the sheltered area created by an offshore breakwater. 1.5 Potential offshore solutions were therefore developed by officers which highlighted the possibility of constructing rock breakwater structures out in the bay connecting The Leug and The Spoig islands and also between The Spoig and the southern Eilean. 1.6 Cabinet were updated with progress on 14 November 2017 with the development of 2 potential options a near shore breakwater option and an off shore breakwater option. It was also advised that potential costs had increased from the original estimated 12.1m. 1.7 At the same meeting a petition was considered in relation to the Save Millport Pier campaign. At this meeting Cabinet also considered a further suggestion from the Save Millport Pier representatives that would involve the consideration of a further solution whereby the timber pier is replaced with a more sustainable similar pier structure constructed from steel and/or concrete, complemented by the provision of an appropriate off shore rock breakwater. 1.8 It was agreed on 14 November 2017 that 3 design solutions would be developed and that further work was required to identify likely option costs to allow appropriate benefits/cost appraisal and affordability considerations. It was further agreed that an economic benefit appraisal of 3 options should be explored to assist in the appraisal of potential designs. 1.9 The three potential design solutions have been developed and are outlined in a comprehensive Scheme Recommendation Report. See executive summary at Appendix 1. The recommended preferred solution is Option 2 (an offshore breakwater together with onshore flood walls) The increased cost for all three options prompted a series of discussions with Scottish Government regarding the affordability and viability of the scheme. A technical report was submitted to Scottish Government presenting further technical clarifications and sensitivity tests to justify the scheme. On 18 October 2018 Scottish Government after scrutinising the proposals confirmed that, based on the technical report submitted they are satisfied that the proposed scheme continues to be eligible for funding. 10

11 1.11 The recommended preferred solution Option 2 does not involve any flood protection works at the existing timber pier. Scottish Government have confirmed in a letter dated 11 September 2018 that Grant only covers cost directly associated with flood protection works. Therefore the flood protection grant funding will not be available for any works at Millport timber pier The existing timber pier is currently closed due to its poor condition. The Save Millport Pier representatives had requested that temporary repairs be carried out to allow its use pending any flood protection scheme works. A separate economic appraisal of a potential temporary 5-year refurbishment of Millport pier was therefore carried out by officers within the Council s Economic Regeneration Team. The outcome of the economic appraisal has determined that the estimated economic benefits from the required repair costs investment would not be economically viable nor deliver value for money The progression of Option 2 (offshore breakwaters) will support the Ayrshire Growth Deal bid for Marine Tourism by providing a sheltered inner harbour environment at Millport that could allow for the future development of a community marina. This would allow Millport to capitalise on its potential as a stopping off point for visiting yachts, supporting the local tourism economy. The Council s Tourism and Coastal Economy officers have been working to develop a proposal in support of step ashore facilities at Millport. The breakwater would be a key step towards this aspiration. 2. Background Millport Coastal Flood Protection Scheme 2.1 As required by the Flood Risk Management Act 2009, an all Ayrshire Local Flood Risk Management Strategy and Plan have been approved and published. Both identify and prioritise required flood protection activities. As part of this, the need for a Millport Coastal Flood Protection Scheme was identified and has been allocated as a Scottish Government priority for implementation. Cabinet approved the All Ayrshire Local Flood Risk Management Strategy on 8 December 2015 and the Millport Flood Protection Scheme was noted in that report with an indicative budget requirement for 12.1m. Approved flood protection schemes attract 80% funding from Scottish Government with the remaining 20% funding being the responsibility of the Local Authority. 2.2 An initial high level option appraisal carried out in 2015 suggested that a breakwater, replacing the existing timber pier, could form part of the potential flood protection works. Two community engagement events with local stakeholders have taken place on the island, one in November 2016 and another in March A summary of these was provided in the Cabinet report of 14 November It had become clear that the island community greatly value the harbour and see it as a gateway to the island. Therefore, stakeholders are seeking to maximise the benefit of the Flood Protection Scheme in conjunction with improvements to the harbour and island access, in order to create opportunities for economic regeneration. An offshore breakwater will allow for a sheltered inner harbour that could support the provision of step ashore facilities for visiting yachts at Millport. It is acknowledged that in order for a Flood Protection Scheme to progress, it will require community support. Any formal objections to the scheme can pose significant delays and could potentially prevent a scheme from being approved by Scottish Government thereby losing the investment opportunity provided by the scheme. 11

12 2.3 Concerns were expressed at the community engagement days with the proposed construction of a nearshore breakwater as this could restrict the operation of the harbour. Local people suggested that offshore breakwater options be appraised, and that this should include an option that would enable the potential future development of a small marina in the sheltered area created by the breakwater. This supports the Ayrshire Growth Deal aspirations for Marine Tourism. This was acted on by officers and a number of offshore breakwater options were assessed, resulting in the option to construct a breakwater between offshore islands in Millport Bay being identified for further consideration. 2.4 The Cabinet meeting of 14 November 2017 was also informed that unexpected unfavourable ground conditions had been identified by investigations completed at the proposed near shore breakwater site at the existing pier in Millport. This issue, plus the addition of two further options resulted in a significant increase in the cost estimate for the scheme. The scheme budget is 12.1m but the current estimates for the three options range from 27.5m to 33.5 (initial capital costs). These figures include scheme development costs and an appropriate contingency reflecting the current pre design stage of the proposals. It is possible that the construction cost could reduce from these estimates following a competitive tender process. The contingency cost element will also potentially decrease as the scheme moves to detailed design stage. The same level of contingency has been included in each of the three solutions being considered. 2.5 Following the Cabinet meeting of 14 November 2017 the scheme designer, Royal HaskoningDHV, was tasked with producing a Scheme Recommendation Report based upon the three scheme options. The appraisal of the three options took cognisance of criteria relating to technical/ flood protection capabilities; health and safety; environmental issues; and economic benefits (including tourism). 2.6 The three options under consideration are: 1. A nearshore breakwater constructed in the harbour to replace the existing timber pier, with onshore flood walls along the Millport shoreline; 2. An offshore breakwater connecting up small islands in Millport Bay with onshore flood walls along the Millport shoreline supporting the potential for step ashore facilities under the auspices of the Ayrshire Growth Deal; 3. A replacement for the existing timber pier, plus an offshore breakwater connecting up small islands in Millport Bay and onshore flood walls along the Millport shoreline. 2.7 Option 1 - The timber section of Millport Pier is removed and a 135m long nearshore breakwater is constructed using either tied sheet piles with a concrete deck (12m wide), and a rock armour revetment along the seaward face to minimise wave reflection and overtopping. Alternatively, a rock armour revetment could be constructed around a 30m long bored pile pier structure. The form of construction of the nearshore breakwater is dependent on findings of geotechnical investigations. The option also includes onshore flood walls and drainage improvements to minimise residual flood risks. Refer to Appendix 2 for a plan of the option. Estimated capital costs m. 12

13 2.8 Option 2 - No works are proposed as part of the flood protection scheme at the timber section of Millport Pier. A 120m rock armour breakwater is constructed connecting The Leug and The Spoig islands and a 210m rock armour breakwater is constructed between The Spoig and the southern Eilean. The option also includes onshore flood walls and drainage improvements to minimise residual flood risks. Refer to Appendix 2 for a plan of the option. Estimated capital costs m. 2.9 Option 3 - The timber section of Millport Pier is replaced with a 30m x 25m bored concrete pile structure (with a similar open appearance to the existing pier). Modelling confirms a 120m rock armour breakwater will still require to be constructed connecting The Leug and The Spoig islands and a 210m rock armour breakwater is required between The Spoig and the southern Eilean to provide the required flood protection. The option also includes onshore flood walls and drainage improvements to minimise residual flood risks. Refer to Appendix 2 for a plan of the option. Estimated capital costs m A summary of the options appraisal is contained in the table below: Initial construction costs at current day rates( ) Option 1 Option 2 Option 3 33,502,096 27,466,993 32,166,993 Benefit/Cost Ratio RANK (B/C) Option 2 does not include the demolition of the timber pier. This enables plans to be made for the future development of the harbour as a separate project. On 11 September 2018 Scottish Government confirmed that Grant only covers cost directly associated with flood protection works. This means that the regeneration of the timber pier cannot be financed from flood protection funding and potentially investment could be sought from other funding sources such as the Ayrshire Growth Deal All three options are considerably in excess of the previously estimated scheme budget. The recommended solution - Option 2 has an estimated initial capital cost of 27.5m. The scheme recommendation is based on technical, economic and environmental considerations and would open up opportunities for the community for further Marina development which could accelerate the economic regeneration of Millport. The Scheme Recommendation Report Executive Summary can be found at Appendix Due to the increase in the project scope and cost estimates Scottish Government requested further technical clarifications and sensitivity tests to justify the scheme. A technical report was submitted that provided answers to and confirmation of the questions raised regarding the scheme. On 18 October 2018 Scottish Government confirmed that, based on the technical report submitted, they are satisfied that the proposed scheme continues to be eligible for funding Should Cabinet agree the Scheme Recommendation as Option 2, it is intended that a public engagement will take place on the island in early 2019 to inform the community and to seek views on the proposed scheme. 13

14 2.15 On the conclusion of the intended public consultation exercise, a further progress update will be provided for Cabinet consideration. An indicative high level outline of potential timescales is detailed below:- December Cabinet agrees recommended preferred option for consultation February Consultation and feedback December Completion of scheme design, EIA and other scheme notification documents January Formal notification of scheme April Conclusion of FPS consultation period September Cabinet approval to progress the detailed design* October 2020 to April Detailed design April 2021 to June Tender period August Construction commences March Scheme completed and operational. * It should be noted that the above timescale does not include a public hearing or enquiry and if either is required this would delay the project by around a year, possibly longer in the case of a public enquiry. Millport Pier 2.16 In December 2014, and in view of continued deterioration of the timber pier, the Council at its budget setting meeting, allocated funding for repairs to the masonary pier and the demolition of the timber section. The timber pier has however remained in position pending the development of the Millport Coastal Flood Protection Scheme, as the originally proposed flood protection scheme included the removal of the existing timber pier and replacement with a rock breakwater structure At two community engagement events, the local community expressed their view on the importance of retaining the Millport Pier, with a request that as an alternative, proposals involving the construction of off shore breakwater structures ne developed for appraisal Furthermore, the local community formed a Save Millport Pier campaign which culminated in the submission of a petition which was considered by Cabinet on 14 November On considering the petition, Cabinet agreed that officers should develop a third potential option for flood protection that involved a replacement of the existing timber pier plus a breakwater between the offshore islands in Millport Bay. The Scottish Government have confirmed that, because the pier reconstruction is not an essential part of the flood protection scheme, they would not fund the pier replacement. The same funding issue applies to the demolition of the timber pier, which could only be funded if it were an essential part of the flood protection works As previously outlined, the recommended preferred solution Option 2 does not involve any works at the Millport timber pier. 14

15 2.21 The existing timber pier is currently closed due to its poor condition. The Save Millport Pier representatives also requested that temporary repairs be carried out to allow its use pending any flood protection scheme works. A separate economic appraisal (See Appendix 3) of a potential temporary 5-year refurbishment of Millport pier was therefore carried out by officers within the Council s Economic Regeneration Team. The outcome of the economic appraisal has determined that the estimated economic benefits from the required repair costs investment would be too low to deliver value for money The recommended preferred solution Option 2, does however facilitate the creation of a sheltered inner bay which could in turn accommodate a mini marina. Longer term aspirations in providing step ashore facilities for visiting yachts, could provide for marine tourism aspirations at Millport In the meantime, recent dive surveys of the existing masonry pier have identified the presence of a number of defects on the sheet piles along its southern perimeter. The dive inspection also noted the presence of voids in the masonry blockwork on the north side of the pier, with undercutting also observed. In addition, the steel staircase bottom landing was noted to be in a state of disrepair with sections of the steel landing and timber supports missing. In order to secure the future structural integrity and continued use of the masonary part of the pier a contract is currently being prepared to carry out steel plate repairs to the sheet piles together with concrete repairs to the masonry pier, however due to the time of year and weather conditions on site these works are programmed to commence in March In addition repairs to the damaged steel staircase will be carried out shortly after in April/May Proposals 3.1 It is proposed that Cabinet notes the work carried out, which has to date developed three potential design options for the proposed Millport Coastal Flood Protection Scheme. 3.2 It is proposed that Cabinet agrees the preferred solution - Option 2 - an offshore breakwater connecting up small islands in Millport Bay plus onshore flood walls as being the most economically viable. This option also allows for the consideration of step ashore facilities allied to the Ayrshire Growth Deal Marine Tourism proposals. This would support increased visitor numbers to Millport through an increase in visiting yachts. 3.3 It is proposed that Cabinet agrees that officers should now undertake public engagement on the recommended preferred solution Option It is proposed that Cabinet agrees the realignment of 1.5m capital investment between the Upper Garnock FPS and the Millport Coastal FPS. 3.5 It is proposed Cabinet notes the remaining 1.58m additional investment required for Millport FPS. 3.6 It is proposed that Cabinet notes the update information with regards to the Millport pier. 15

16 3.7 It is proposed that Cabinet agrees that officers will continue to work with the local community with regards to their aspirations for coastal tourism through the Ayrshire Growth Deal. 3.8 It is proposed that Cabinet agrees to receive further progress updates on the Millport Coastal Flood Protection Scheme after the public engagement events in early

17 4. Implications Financial: Human Resources: Legal: Equality: Children and Young People: Environmental & Sustainability: Key Priorities: Community Benefits: An initial high level indicative capital budget requirement of 12.1m was identified for Millport Coastal Flood Protection Scheme, with an expectation of Scottish Government meeting 80% of costs ( 9.68m) and North Ayrshire Council meeting 20% of costs ( 2.42m). North Ayrshire Council has allocated 2.42m as part of the capital investment programme to 2027/2028. The current budget of 12.1m will not be sufficient for any of the scheme options and further funding will be required both from North Ayrshire Council and the Scottish Government. The recommended option indicative costs will increase the capital funding requirement of the Council from 2.42m to 5.5m. The additional funding requirements can be partly met from the current provision for the Upper Garnock Flood Protection Scheme which is not anticipated to be fully required. 1.5m can be transferred from this scheme to the Millport Coastal Scheme resulting in a net additional capital investment of 1.58m which will require to be considered as part of the review of the Council s allocated capital investment programme. None. Access to the timber section of Millport Pier has been prohibited due to safety concerns and to ensure compliance with the Health and Safety at Work etc Act An Equality and Children s Rights Impact Assessment will be carried out during the detailed design stage of the project. As above. The flood protection scheme will protect the environment and fabric of Millport against flooding in the long term. The flood protection scheme will protect the safety of residents in the affected areas and will also help develop the economy of Millport. The actions are being taken in order to improve safety and contribute to the development of the local economy. They also support the potential development of step ashore facilities allied to the Ayrshire Growth Deal proposals. 17

18 5. Consultation 5.1 To date, two community engagement events have been held with stakeholders that greatly influenced the development of the proposed flood protection scheme. 5.2 In addition to the above a forum was established involving stakeholders, elected members and officers (including Economy and Communities) to discuss issues relating to the impact of the proposed flood protection scheme. This has afforded the opportunity to consider the views of the local community with regards to the impact of any flood protection scheme on the local economy and has also allowed discussion to take place concerning the Millport timber pier and the potential for improvement of the local economy around a possible marina. 5.3 Further community engagement is proposed in early 2019 to seek views on the recommended preferred solution Option 2. RUSSELL McCUTCHEON Head of Commercial Services For further information please contact Patricia Rowley, Team Leader (Flooding) on Ext Background Papers Appendices: Appendix 1 Millport Coastal Flood Protection Scheme - Scheme Recommendation Report Executive Summary Appendix 2 Location Plan and Proposed Scheme (including offshore Works Option 1, 2 & 3) Appendix 3 Millport Pier Marine Impact Study Internal Appraisal of Economic Impacts 18

19 Appendix 1 Executive Summary This Report Work has been progressing to develop design proposals for a flood protection scheme at Millport to protect the town from coastal flooding. This work has included a series of non-statutory community consultation events to facilitate the development of proposals which will: a) achieve the required flood protection levels and b) be supported by the local community. This report presents the findings of work completed to date to develop the scheme proposals. A recommendation is made for the preferred option to be progressed to scheme notification to Scottish Government. Background The Ayrshire Local Flood Risk Management Strategy and Plan identifies the need for a flood protection scheme for Millport. An initial high-level option appraisal carried out in 2015 suggested that a rock breakwater, replacing the existing timber pier, plus onshore flood walls, could potentially be constructed to form the flood protection works, at an indicative cost of 12.1m. Two non-statutory public consultations with local stakeholders have taken place (November 2016 and March 2017). Consultation highlighted that there was opposition to the nearshore breakwater proposal as this could restrict the operation of the harbour. Local people suggested that offshore breakwater options be appraised. Offshore breakwater options have since been assessed, resulting in an option to construct a breakwater between offshore islands in Millport Bay being identified for further consideration. It was also clear from the consultations that the island community greatly value the harbour and see it as a gateway to the island. Therefore, stakeholders are seeking to maximise the benefit of the Flood Protection Scheme in conjunction with improvements to the harbour and island access, to create opportunities for economic regeneration. Cost estimates have increased significantly compared to the estimate of 12.1m provided by the initial highlevel options appraisal. This is due to the introduction of the offshore breakwater options, findings of ground investigations and increase in extent of the proposed scheme. The scheme budget is currently 12.1m but the estimated Initial Construction Costs for the three options now range from 27.5m to 33.5m (initial capital costs, including scheme development costs and a substantial contingency). The increased cost for all potential scheme options prompted discussions with Scottish Government regarding the affordability and viability of the scheme. A technical report (Appendix B) was submitted to Scottish Government presenting further technical clarifications and sensitivity tests to justify the scheme. Scottish Government has confirmed that, based on the technical report provided, they are satisfied that the proposed scheme continues to be eligible for grant funding. Approved flood protection schemes attract 80% funding from Scottish Government with the remaining 20% funding being the responsibility of the Local Authority. Risk of Flooding Millport is at risk from flooding due to overtopping resulting from wave action during storms originating to the south or south west within the Firth of Clyde. Wave disturbance modelling and overtopping analysis was completed to calculate potential flood depths, extents and properties at risk. A total of 595 residential properties and 62 commercial properties in Millport are at risk from flooding and erosion. Very high wave overtopping rates also pose a safety risk to pedestrians and vehicles along parts of the Millport seafront, during storm events with a probability of occurrence of 20% in any year (1 in 5 per year return period). The flood risk maps for Millport show that properties along the eastern part of Glasgow Street (adjacent to the Cross House), in the Old Town (Millburn Street and Crichton Street) and the road along Marine Parade are at risk from flooding on storm events with a probability of occurrence of 100% in any year (1 in 1 per year return period). These areas are consistent with anecdotal and photographic evidence from recent flood events, although the depth of flooding predicted by the modelling is greater than has been experienced in recent years. 19

20 Potential Solutions Option 1 (Figure 6): The timber section of Millport Pier is removed and a 135m long nearshore breakwater is constructed using tied sheet piles with a concrete deck (12m wide) with a rock armour revetment along the seaward face. Alternatively, a rock armour revetment could be constructed around a 30m long bored pile pier structure. The form of construction of the nearshore breakwater is dependent on findings of offshore geotechnical investigations. Option 2 (Figure 7): No works are undertaken to the timber section of Millport Pier. A 120m long rock armour breakwater is constructed connecting The Leug and The Spoig islands and a 210m long rock armour breakwater is constructed between The Spoig and the southern Eilean. Alternative breakwater layouts have previously been considered and ruled out based on potential risks to navigation, coastal process impacts and high costs. Option 3 (Figure 7): The timber section of Millport Pier is replaced with a 30m x 25m bored concrete pile structure (with a similar open appearance to the existing pier). A 120m long rock armour breakwater is constructed connecting The Leug and The Spoig islands and a 210m long rock armour breakwater is constructed between The Spoig and the southern Eilean. For all of these options, nearshore or offshore breakwaters alone would not sufficiently reduce the risk of flooding to the west of the Millport Pier, or to the east of Guildford Street. Onshore and foreshore works are also required for all options, including: flood walls (Glasgow Street, Kames Bay, Marine Parade (part)); raised crest walls to the existing sea walls (West Bay Road, Millburn Street, Crichton Street, shore connected rock breakwater (Crichton Street); and rock revetment (Clyde Street). The scheme will provide a consistent standard of protection against flooding throughout Millport, with the initial standard being 1 in 200 per year (0.5% Annual Exceedence Probability). Adaptation to address climate change impacts will be undertaken in the future. For all options, the proposed onshore and offshore works would reduce residual overtopping rates to less than 10 l/s/m for a 1 in 200 per year return period storm, which is an appropriate limit to minimise the risk of loss of life to pedestrians. Residual flood risk extents and depths for Options 1, 2 and 3 are shown on the flood risk maps included in Appendix A, with the residual flood risk for Option 2 and Option 3 being slightly less than for Option 1. The maximum height of any onshore flood walls is limited to 1.2m above the adjacent ground level. If adaptation works are not undertaken in the future to address climate change risks, overtopping rates to would be expected to increase to l/s/m. For most parts of Millport, a 200mm increase in the height of the flood walls or sea walls is expected to be sufficient to address climate change risks. Alternatively, property-level flood resilience measures could be installed. Environmental Impacts An interim environmental appraisal (Interim EIA) has been completed for the potential solutions and is included as Appendix E. The Interim EIA is based on the environmental assessment work undertaken to date and focuses on the differentiating (environmental) factors between the potential options. The Interim EIA aims to demonstrate that all issues have been considered in the selection of the preferred option, with environmental decisions key to the development of the scheme. Mitigation measures have been identified, which should be incorporated into the scheme design to address any residual impacts. This work, plus further environmental impact assessment which will be undertaken once a preferred option is agreed, will feed into the preparation of an Environmental Statement for the preferred option. November 2018 MILLPORT COASTAL FPS SRR PB4749WATRP017_ vi 20

21 The key environmental issues for selection of a preferred option relate to the impact of the proposed solutions on the human environment, including the visual appearance of the scheme; potential impacts on tourism, recreation and the local economy; and changes to navigation in Millport Bay. Options 2 and 3 could enable the provision of additional moorings in Millport Bay, or even the development of a small marina in the future, which (if viable) would be undertaken as a separate project. Costs and Benefits An economic appraisal of the proposed options has been completed in accordance with best practice guidance, with costs and benefits assessed over the 100-year life of the scheme. This has demonstrated that implementation of a Flood Protection Scheme for Millport would have economic benefits of about 68m to the national economy, and benefits of about 110m when the local economic impacts are also included. A high proportion of the total economic benefits (10%) relate to safety risks (economic valuation of Risk to Life), which demonstrates the significant benefits of the proposed scheme for public safety. Initial Construction Costs are high, ranging from 27.5m to 33.5m (capital cost of initial works, plus associated design and construction management costs). For the least-cost option, North Ayrshire Council would be required to provide capital funding of 5.49m. Project Risks The local community have concerns about the impact that potential changes to Millport Pier could have on the local economy. These concerns are greatest in relation to Option 1. Option 3 includes replacement of the timber pier, but at additional cost and with limited flood protection benefits. The additional costs for Option 3 are not eligible for Scottish Government grant funding. For all options, there is a significant risk that objections will be made to the Flood Protection Scheme submission, particularly in relation to proposed changes to Millport Pier; the visual appearance of the scheme; and potential impacts on existing moorings and navigation in Millport Bay. If objections are not withdrawn then a public local inquiry may be required. This would cause significant delays to the programme and increase project costs. Marine construction works can have significant risks for health and safety, however these risks can be mitigated through appropriate risk assessment and best practice construction methodology. Potentially significant health and safety risks have been identified if any works are required in the vicinity of Millport Pier (for Option 1), where the ground conditions remain uncertain. For Options 2 and 3, there is a potential risk to navigation in Millport Bay as navigation routes would be altered, although these options would reduce existing risks by closing the gap between the Leug, the Spoig and the Eileans. Aids to navigation would be included in the scheme design. Preferred Solution Option 2 is recommended as the preferred option. The estimated Initial Construction Cost of Option 2 is 27.5m (this cost includes the initial construction works, associated design, investigations and construction management). Future costs for maintenance and climate change adaptation are not included in the Initial Construction Cost estimate. When future costs are included, and all costs discounted to present day values (in accordance with guidance for economic appraisal) the Present Value whole-life cost of the scheme is 27.2m. The Benefit Cost ratio for the scheme is 2.51, calculated based on the Present Value whole-life costs and the Present Value economic benefits to the nation. Scottish Government has confirmed that the proposed scheme is eligible for grant funding. North Ayrshire Council will be required to contribute 5.49m to this project. November 2018 MILLPORT COASTAL FPS SRR PB4749WATRP017_ vii 21

22 Appendix ± ± Crown copyright and database rights 2016 Ordnance Survey Use of this data is subject to terms and conditions. Contains OS data Crown Copyright and database right 2018 Legend Proposed Works Works to existing coastal defences New Flood Wall Onshore Works Working footprint Works on the foreshore Rock Breakwater Rock Revetment Offshore works - Option 1 Harbour breakwater HaskoningDHV UK Ltd. Client: Project: North Ayrshire Council Title: Figure: Location Plan and Proposed Scheme (including offshore works Option 1) 9 Drawing No: Revision: Date: 0 25/09/ Metres Co-ordinate system: Millport Flood Protection Scheme Drawn: TC Checked: Size: Scale: AS A3 1:6,000 British National Grid ROYAL HASKONINGDHV Marlborough House Marlborough Crescent Newcastle-upon-Tyne, NE1 4EE +44 (0)

23 ± ± Crown copyright and database rights 2016 Ordnance Survey Use of this data is subject to terms and conditions. Contains OS data Crown Copyright and database right 2018 Legend Proposed Works Works to existing coastal defences New Flood Wall Onshore Works Working footprint Works on the foreshore Rock Breakwater Rock Revetment Offshore works - Option 3 Offshore Breakwater F Timber pier replaced for Option 3 No works to timber pier for Option 2 HaskoningDHV UK Ltd. Client: Project: North Ayrshire Council Title: Figure: Location Plan and Proposed Scheme (including offshore works Option 2 & 3) 10 Drawing No: Revision: Date: 1 31/10/ /09/ Metres Co-ordinate system: Millport Flood Protection Scheme Drawn: Checked: Size: Scale: TC AS A3 1:6,000 TC AS A3 1:6,000 British National Grid ROYAL HASKONINGDHV Marlborough House Marlborough Crescent Newcastle-upon-Tyne, NE1 4EE +44 (0)

24 Appendix 3 Millport Pier Marine Tourism Impact Study Internal Appraisal of Economic Impacts Final Report August

25 Economic Impact of Millport Marine Tourism Introduction An examination of the tourism benefits of the public moorings at Millport was undertaken to facilitate a decision on the potential redevelopment of the wooden pier prior to flood protection defences being installed in 5 years. Methods An internal workshop meeting of key council staff, also drawing on the experience and knowledge of an external consultant involved in the FPS study, was held on 26 th June 2018 and the key issues identified. A review of the information generated to date (e.g. Ekos report, Optimal Economics options report, Royal HaskoningDHV FPS studies, Sweco) was carried out by the Council s Economic Growth department and the key findings were: Total present value cost to refurbish timber pier, incl. design and maintenance is 768,903 but potentially 109,000 additional cost could be incurred (from SWECO report) Pier-head regeneration costs arising as a consequence of the refurb has not yet been identified. The assumed life of the refurbishment works is 5 years. Any spend arising from large vessel (e.g. Waverley) would occur elsewhere on Cumbrae/North Ayrshire regardless of the pier The flood protection role of the refurbishment would be negligible. The marine tourism benefits were previously estimated by Optimal Economics at 79,771 per annum for 5 years ( 398,855 total) The benefit-to-cost ratio of the works was identified by Optimal as 0.67 meaning that costs outweighed the benefits. The employment impact and, therefore, value for money analysis remain to be quantified Marine tourism benefits are sensitive to key assumptions relating to mooring utilisation and on-shore spend by boat crews, passengers and other marine recreation users (e.g. kayakers) who come ashore via the pier. As a result, usage monitoring of the public moorings at Millport was conducted during July 2018 and four days observations (including weekend and weekdays) confirmed the usage. The latest STEAM tourism data for 2017 were used to estimate a revised and up-to-date onshore marine tourist spend figure. 2 25

26 Tourism volumes, impact and value for money Tourism on Millport appears generally healthy with 745,619 ferry passenger trips recorded for Total Volumes of passengers rose 1% and cars 5% in the last year, suggesting the island has an enduring appeal. The utilisation of the private moorings appeared to be 90%+ at the weekend and varied between 20% and 40% during the week. However, the public moorings utilisation appeared much lower. Between 3 and 5 vessels were using the public moorings, averaging 4 per day. Very low flows of vessels tethering throughout the day was observed (1-2 per day). On this basis the current usage can be estimated at 4 vessels per day. The reasons for the low usage are unclear and data from the harbourmaster confirmed low usage had been prevalent in the months before July. Assuming 2 people per vessel make an onshore visit implies that 8 people per day might come ashore and make expenditures. This is an optimistic scenario therefore the economic impact estimates represent an upper limit. The average day visitor spend in North Ayrshire was 49 and 445 FTEs were supported by 766,210 day visitors, which suggests 1,721 typical day visitors support 1 direct FTE. Optimal Economics estimate that onshore spend in Millport will be 50% of the typical day visitor spend, which implies and we agree with, and adopt, this same assumption. 8 marine tourists coming onshore per day equates to 1,927 per annum (assuming no visits in four winter months). The observations/records of Cumbrae Community Development Company were compared with our own observations and they closely tallied. Current CCDC data identify 1,629 marine tourists (annually), which is marginally lower than our own estimate. Marine tourist spend would be 47,200 annually, the majority of which will be on food and drink or retail spend. Turnover per employee in the North Ayrshire food and drink sector is 23,600, therefore the above spend could be expected to support 2 jobs in North Ayrshire jobs at a maximum. The 2 jobs generated by the marine tourists currently using the public moorings is dependent on investment of 11,446 per annum to maintain and fit the moorings each year. The gross cost per job from this expenditure is therefore in the order of 5,720 per annum which could be argued as reasonable value for money. If the pier were rebuilt and this boosted utilisation of the 23 closest moorings to 80%, the total additional employment gain could be 8 jobs. The jobs would only last for the 5 year life of the pier so, using a 10-year permanency factor, they can only be considered as 4 permanent jobs. With a refurb cost of 768,903 this would represent a cost per 10-year job of 192,000. This is unjustifiably high and would definitely not meet the value for money requirement of the Council. 3 26

27 Conclusion and future plans The potential economic gain from the temporary pier refurbishment is too low and impermanent to pass value for money tests and therefore the Council are recommended to look at alternatives to supporting marine tourism on Cumbrae. Plans supporting the development of Marine Tourism under the auspices of the Ayrshire Growth Deal have identified Cumbrae as a key hub on the Firth of Clyde. With significant yachting traffic passing the island each day, there are opportunities to provide a dedicated step ashore facility, that would boost visitor numbers to the island and provide significant opportunities to increase visitor spend on the island. This facility would largely require an offshore breakwater, in order to provide the best conditions from which to operate a step ashore facility. It would be far more effective than the current moorings and would be of greater benefit than a regenerated pier that was originally developed to serve as a mooring for paddle steamers. A dedicated step ashore facility would support the operations of the four main marinas operating on the Clyde coast by providing boat owners with a key destination. This work is further supported by more recent work to consider route development opportunities within Ayrshire, which together with the aspirations for Marine Tourism, would offer significant potential for Cumbrae to consolidate its position as a tourism destination, for the benefit of visitors and the people that currently stay on the island. The above aspiration will be considered through the work involved in the Ayrshire Growth Deal and bearing in mind proposed flood defence requirements. 4 27

28 Appendix Map of area of study (Millport) * Lifting and laying and seabed rental is 11,446 per annum (excludes replacement & repairs) 5 28